increase font size
Lino Saputo Junior.
Australia's new dairy kingpin is urging co-ops in Europe and New Zealand to rein in milk production and help stamp out price volatility.
Lino Saputo Junior, the chairman of Canadian dairy giant Saputo, told the Australian Dairy Conference this morning that co-ops have to show more leadership on this issue.
He urged co-ops to follow milk consumption patterns around the world.
“To improve the economics of dairying we need some leadership at the co-op level in the US, Europe and Oceania whereby they are not adding capacity and in order to fill that capacity they are urging suppliers to increase their milk production.
“Because somewhere along the line you will try to sell those solids (milk solids) and if you can’t sell those solids the prices will be depressed,” Saputo Junior says.
“And if prices are depressed you can’t pay a high price for those solids; it’s very simple.”
Saputo is a listed dairy processor with annual sales of $12 billion. It owns Warrnambool Cheese and Butter Company in Victoria since 2014 and is seeking regulatory approval to buy troubled Australian co-op Murray Goulburn.
If the MG sale is approved, Saputo will leapfrog Fonterra and become Australia’s biggest milk processor.
Saputo Junior noted that Canada has a milk supply management system with very little price volatility.
He says milk suppliers need to be protected from price volatility.
“I’m hoping somewhere along the line there will be some common sense and some discipline that comes into this industry from the major co-ops in the US, Europe and NZ.
“Ultimately they must look at the best interest of the supplying community; first and foremost
“And if they do that effectively then the economics will be much better in the system; there just has to be the right balance.”
OPINION: Your old mate hears that at a recent China Business Summit, PM Christopher Luxon delivered a none-too-subtle "could try harder" report card on the red meat industry regarding its exports to China - particularly when compared to Australia.
More Australian states are embracing virtual fencing technology, opening growth opportunities for Kiwi companies like Halter.
Fonterra says its ongoing legal battle with Australian processor Bega Cheese won’t change its divestment plans.
Farmers in the Australian state of New South Wales will soon be able to use virtual fencing and herding technology to boost farm productivity.
Australian farmers advocate NFF says this year’s Federal Election will be a defining moment for Australian agriculture.
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.
Rural retailer Farmlands has reported a return to profitability, something the co-operative says shows clear progress in the second year of its five-year strategy.
